LANSING, Mich. (WLNS) – One in three adults in the U.S. has medical debt. Mary Lou Sandler is one of them.

Back in 2020 she cut her hand in the kitchen and had to go to the ER.

“I actually just found the bill. It was $900 dollars. And then when it went to collections it was $2,700,” said Sandler.

For years, that bill has sat on Sandler’s credit report. Until last month, when it was wiped off and her credit went up 41 points.

Last year, President Biden introduced a series of reforms to help ease the burden of medical debt.

The first phase kicked in last summer. Any medical debt that was paid off was to be removed by the three major credit bureaus.

The second phase kicked in this year. Those same credit bureaus have agreed to wipe any unpaid debt of less than $500. The majority of medical debt in America is for bills under that threshold.

Also under these new regulations, you now have a full year before your medical debt can go on to your credit report after being sent to collections, that’s up from six months.